In a complex business environment: shifting policies and regulations; competence and talent shortages; technological advancement and ever-increasing amounts of data; growing pressure on Environmental, Social and Governance (ESG) considerations, etc., the Real Estate and Construction market is expected to significantly evolve in the coming years. 

KPMG in Vietnam conducted a Building Construction and Real Estate (BCRE) Survey to reflect the challenges and opportunities that industry leaders are facing as well as some of the preferred mitigation and transformation strategies. We have received numerous responses from business leaders and professionals who participated in the Survey, which enabled us to gain important insights on the key challenges and current trends in the industry.  

'A Step Change Towards Efficient Organisations’ is the detailed report with key insights and findings of the survey along with leading practices, bringing out a perspective of the industry leaders and KPMG on the transformations that are expected to shape the Real Estate and Construction industry in Vietnam over the next 3-5 years. 

Report Outline

The findings have been organized in three key sections: 

1. On-ground challenges in Project Delivery and Mitigation Strategies          
— Key factors delaying projects as per the respondents:        
     • At pre-construction stage: Regulatory approvals and land acquisition        
     • Construction & handover stage: Frequent design & scope change along with ineffective planning

— Most preferred transformation initiatives for overcoming challenges in project delivery as highlighted by respondents:
     • Standardising Operating Processes (SOPs)
     • Streamlining Management Reporting system
     • Establishing a Project Monitoring Office/Control Room  

2. Operation Transformations, Technology and Innovation            
— Current investment levels in Technology in most Real Estate and Construction Organizations in Vietnam: Moderate to Low level

— Major barriers in technology implementation as per the respondents:
     • Substantial capital investment
     • Limited skillset availability 
     • Resistance to change within the organisation         

— Technologies (Front-office functions) with the potential to deliver a high return on investment as opined by the respondents:           
     • Building Information Modeling (BIM)
     • Advanced Data and Analytics 
     • Integrated Project Management System and Management Information System  

3. Environmental, Social and Governance (ESG) considerations
— Most of the respondents agreed that Environmental, Social, and Governance (ESG) elements are changing the market environment and will be critical for sustainable success in the medium term for real estate organisations

— Despite acknowledgement and awareness, 50% of the respondents indicated that they have ESG transformation plans in place, but the plans need further thoughts and detailed guidance for implementation